Looking to add to an existing holding on lloyds.
We have the following Confluences / Observations;
1) Initial push above EMA and close above
2) Consolidation of these gains at around 36p (not a fake out)
3) Rejection of a move below EMAs and another push higher
4) There was then some rejection from the 40p region and further consolidation again at 36p - showing this as an emerging area of Support
RISKS
1) It does look as though there is momentum divergence to the downside (momentum creating a lower high, and then falling rapidly)- this is not to say that price should sharply decline, but rather that another push higher isnt just around the corner - so dont get in too early as the stock may continue its consolidation for a while
2) Predictions of a house price crash in 2021 have hampered the shares, as seen by the bearish engulfers at 40p & 38p
I will be looking to buy again if price pushes down to the 35-36p region and this area holds (dont buy into a rapidly falling market!)
We have the following Confluences / Observations;
1) Initial push above EMA and close above
2) Consolidation of these gains at around 36p (not a fake out)
3) Rejection of a move below EMAs and another push higher
4) There was then some rejection from the 40p region and further consolidation again at 36p - showing this as an emerging area of Support
RISKS
1) It does look as though there is momentum divergence to the downside (momentum creating a lower high, and then falling rapidly)- this is not to say that price should sharply decline, but rather that another push higher isnt just around the corner - so dont get in too early as the stock may continue its consolidation for a while
2) Predictions of a house price crash in 2021 have hampered the shares, as seen by the bearish engulfers at 40p & 38p
I will be looking to buy again if price pushes down to the 35-36p region and this area holds (dont buy into a rapidly falling market!)